EU says UK must make substantial movement in Brexit trade talks

EU is prepared for worst-case scenario of no deal with UK, Germany’s EU affairs minister says

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  Anti-Brexit demonstrators hold up placards as they march outside the Houses of Parliament in central London. AFP

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  Pro-EU protesters gather outside the Houses of Parliament. Getty Images

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  Anti-Brexit protesters attend a demonstration at Westminster. Reuters

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  A pro-Brexit activist, left, remonstrates with anti-Brexit activist Steve Bray outside the Houses of Parliament. AFP

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  Anti-Brexit activist demonstrates outside the Houses of Parliament. AFP

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  Pro-EU campaigners march down Whitehall ahead of a crucial vote at Parliament. EPA

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  Pro Remain and pro Leave campaigners face off outside the British Houses of Parliament. EPA

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  Police officers monitor Pro EU campaigners as they protest outside Downing Street. EPA

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  Britain's Prime Minister Boris Johnson gestures toward the opposition benches as he stands a the dispatch box and speaks in the House of Commons in London. PRU / AFP

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  Johnson gestures toward the opposition benches as he stands a the dispatch box. PRU / AFP

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  Britain's main opposition Labour Party leader Jeremy Corbyn listens as Johnson speaks at the dispatch box. PRU / AFP

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  Johnson stands a the dispatch box and speaks in the House of Commons. PRU / AFP

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  British Parliament Speaker John Bercow calling for order in the House of Commons in London. EPA

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  Johnson gestures at the dispatch box and speaks in the House of Commons. PRU / AFP

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  Johnson in the House of Commons in London. PRU / EPA

Britain must make substantive movement in trade talks with the European Union if it wants a post-Brexit deal, Germany said Tuesday, amid warnings that negotiations were at a critical stage.

German EU affairs minister Michael Roth said the bloc was still working hard for a deal but added it was ready to trade from 2021 without an agreement that would avoid tariffs or quotas.

"We are at a very critical stage in the negotiations and we are extremely under pressure. Time is running out," Mr Roth said as the EU held Brexit talks in Luxembourg.

"That's why we expect substantial progress by our friends in the United Kingdom in key areas: in particular on governance, 'level playing field' and fisheries." But Mr Roth also warned that a no-deal scenario would be the worst case situation for both sides.

The EU-UK negotiation aims to reach a new partnership agreement on everything from trade to transport and nuclear co-operation from January 1 next year, when Britain’s post-Brexit transition period finishes.

Britain’s Foreign Secretary Dominic Raab told parliament in London there was still room for a deal to be hammered out.

"The scope and the prospects for a deal are there,” he said.

"I'm hopeful that we can close the gap, but ultimately it will require the same goodwill, the same pragmatism, the same flexibility on the EU side, that the United Kingdom and this Prime Minister (Boris Johnson) have shown.”